SB45,1403,20 (f) Create, publicize, and implement a method of communication to promptly answer questions from and address the needs of persons affected by the implementation of the program before the program is fully operational.

SB45,1403,22 (g) Establish the audit functions under sub. (1) (n) with a timeline to complete each audit function every 2 years.

SB45,1404,2 (h) Conduct any other activities determined by the commissioner to be important to successful implementation of the program.

SB45,1404,4 (5) Report. By January 1 and July 1 of each year, the commissioner shall submit to the joint committee on finance a report including all of the following:

SB45,1404,6 (a) A list of prescription drugs included in the prescription drug importation program under this section.

SB45,1404,9 (b) The number of pharmacies, health care providers, and health plans and health insurance policies participating in the prescription drug importation program under this section.

SB45,1404,14 (c) The estimated amount of savings to residents of this state, health plans and health insurance policies, and employers resulting from the implementation of the prescription drug importation program under this section reported from the date of the previous report under this subsection and from the date the program was fully operational.

SB45,1404,16 (d) Findings of any audit functions under sub. (1) (n) completed since the date of the previous report under this subsection.

SB45,1404,18 (6) Rule making. The commissioner may promulgate any rules necessary to implement this section.

SB45,2889 Section 2889. 601.59 of the statutes is created to read:

SB45,1404,20 601.59 State-based exchange. (1) Definitions. In this section:

SB45,1404,21 (a) “Exchange” has the meaning given in 45 CFR 155.20.

SB45,1405,2 (b) “State-based exchange on the federal platform” means an exchange that is described in and meets the requirements of 45 CFR 155.200 (f) and is approved by the federal secretary of health and human services under 45 CFR 155.106.

SB45,1405,6 (c) “State-based exchange without the federal platform” means an exchange, other than one described in 45 CFR 155.200 (f), that performs all the functions described in 45 CFR 155.200 (a) and is approved by the federal secretary of health and human services under 45 CFR 155.106.

SB45,1405,13 (2) Establishment and operation of state-based exchange. The commissioner shall establish and operate an exchange that at first is a state-based exchange on the federal platform and then subsequently transitions to a state- based exchange without the federal platform. The commissioner shall develop procedures to address the transition from the state-based exchange on the federal platform to the state-based exchange without the federal platform, including the circumstances that shall be met in order for the transition to occur.

SB45,1405,16 (3) Agreement with federal government. The commissioner may enter into any agreement with the federal government necessary to facilitate the implementation of this section.

SB45,1405,22 (4) User fees. The commissioner shall impose a user fee, as authorized under 45 CFR 155.160 (b) (1), on each insurer that offers a health plan through the state-based exchange on the federal platform or the state-based exchange without the federal platform. The user fee shall be applied at one of the following rates on the total monthly premiums charged by an insurer for each policy under the plan for which enrollment is through the exchange:

SB45,1406,2 (a) For any plan year for which the commissioner operates a state-based exchange on the federal platform, the rate is 0.5 percent.

SB45,1406,6 (b) For the first 2 plan years for which the commissioner operates a state- based exchange without the federal platform, the rate is equal to the user fee rate the federal department of health and human services specifies under 45 CFR 156.50 (c) (1) for the federally facilitated exchanges for the applicable plan year.

SB45,1406,9 (c) Beginning with the 3rd plan year for which the commissioner operates a state-based exchange without the federal platform and for each plan year thereafter, the rate shall be set by the commissioner by rule.

SB45,1406,11 (5) Rules. The commissioner may promulgate rules necessary to implement this section.

SB45,2890 Section 2890. Subchapter VI (title) of chapter 601 [precedes 601.78] of the statutes is created to read:

SB45,1406,14 CHAPTER 601

SB45,1406,15 SUBCHAPTER VI

SB45,1406,16 PRESCRIPTION DRUG

SB45,1406,17 AFFORDABILITY REVIEW BOARD

SB45,2891 Section 2891. 601.78 of the statutes is created to read:

SB45,1406,19 601.78 Definitions. In this subchapter:

SB45,1406,21 (1) “Biologic” means a drug that is produced or distributed in accordance with a biologics license application approved under 21 CFR 601.20.